The Bank of East Asia, Limited
The Bank of East Asia, Limited Fundamental Analysis
The Bank of East Asia, Limited (0023.HK) shows moderate financial fundamentals with a PE ratio of 10.17, profit margin of 13.84%, and ROE of 3.26%. The company generates $25.3B in annual revenue with moderate year-over-year growth of 6.09%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 0023.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak0023.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent0023.HK trades at attractive valuation levels.
Growth Score
Excellent0023.HK delivers strong and consistent growth momentum.
Financial Health Score
Excellent0023.HK maintains a strong and stable balance sheet.
Profitability Score
Weak0023.HK struggles to sustain strong margins.
Key Financial Metrics
Is 0023.HK Expensive or Cheap?
P/E Ratio
0023.HK trades at 10.17 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 0023.HK's PEG of -0.36 indicates potential undervaluation.
Price to Book
The market values The Bank of East Asia, Limited at 0.34 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.73 times EBITDA. This signals the market has high growth expectations.
How Well Does 0023.HK Make Money?
Net Profit Margin
For every $100 in sales, The Bank of East Asia, Limited keeps $13.84 as profit after all expenses.
Operating Margin
Core operations generate 18.98 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.26 in profit for every $100 of shareholder equity.
ROA
The Bank of East Asia, Limited generates $0.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Bank of East Asia, Limited generates strong operating cash flow of $7.77B, reflecting robust business health.
Free Cash Flow
The Bank of East Asia, Limited generates strong free cash flow of $7.36B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.79 in free cash annually.
FCF Yield
0023.HK converts 20.71% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.17
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.36
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.34
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.33
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.005
vs 25 benchmark
How 0023.HK Stacks Against Its Sector Peers
| Metric | 0023.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.17 | 18.59 | Better (Cheaper) |
| ROE | 3.26% | 801.00% | Weak |
| Net Margin | 13.84% | -498.00% (disorted) | Strong |
| Debt/Equity | 0.28 | 0.98 | Strong (Low Leverage) |
| Current Ratio | 6.33 | 661.40 | Strong Liquidity |
| ROA | 0.38% | -21324.00% (disorted) | Weak |
0023.HK outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Bank of East Asia, Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-51.40%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
95.25%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-155.16%
Industry Style: Value, Dividend, Cyclical
Declining